Mexan Limited (00022.HK)

Business Summary:
The principal activities of the group include property investment, hotel operation and investment holding.

Performance for the year:
Revenue of the Group for the year ended 31 March 2017 amounted to approximately HK$85 million which solely comprised the turnover generated from the hotel operation, representing a decrease of 37% when compared with the revenue of approximately HK$134 million generated in last year.

The Group recorded a loss attributable to owners of the Company of approximately HK$0.52 million for year ended 31 March 2017, when compared with the profit attributable to owners of the Company of approximately HK$36 million for the year ended 31 March 2016.

The loss and total comprehensive income in this year was mainly attributable to the decrease of revenue generated from the hotel operation.

Business Review:
The Group operates the Mexan Harbour Hotel, a 800-room hotel in Tsing Yi, maintained an average occupancy rate of approximately 99% for the year under review. It is because the average room rate decreased from April 2016 to March 2017, resulting the total income decrease when comparing with last year. The Group closely monitors the business environment and adapts quickly to overcome challenges we encountered

Prospects:
Looking forward, Hong Kong’s hospitality industry may remain weak in the near term, adversely affected by the sluggish global economic condition and a slowdown of inbound tourism. The operating environment for the hotel market will be quite challenging this year and the prospects remain pessimistic. With our experienced management team, we are confident that we can tackle these challenges. Our core businesses will continue to generate recurrent and stable income. The Group is financially healthy and will deliver satisfactory growth and sustainable returns to our shareholders.